July 14, 2021 3:20:52 am
S&P Global Ratings has affirmed its lowest investment grade sovereign rating at ‘BBB-’ and stable outlook for India maintaining that the country’s recovery will gain pace through the second half of fiscal 2022 and the following year. “The stable outlook reflects our expectation that India’s economy will recover following the resolution of the COVID-19 pandemic,” S&P said.
It has projected the economy to grow at 9.5 per cent in FY22 over a very weak base of record 7.3 per cent contraction in FY21.
However, the rating agency warned that it may lower the ratings if the country’s economy recovers significantly slower than it expects from FY22 onwards or net general government deficits and the associated accumulation of indebtedness materially exceed its forecasts, signifying a weakening of India’s institutional capacity to maintain sustainable public finances. It warned that fiscal settings are weak, and deficits will remain elevated.
📣 The Indian Express is now on Telegram. Click here to join our channel (@indianexpress) and stay updated with the latest headlines
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.